Understanding the Loti Currency of Bhutan

Loti (also known as loiti or loti) is the official currency of Bhutan, a small country located in the Himalayas. The name "loti" means "thousand" in Dzongkha, the national language of Bhutan.

The Bhutanese government introduced the loti in 1972, replacing the Indian rupee, which had been the official currency until then. The loti was initially pegged to the Indian rupee at a fixed exchange rate of 1 loti = 1.60 Indian rupees. However, in 2007, Bhutan switched to a managed float regime, allowing the currency to fluctuate based on market forces.

The loti is issued by the Royal Monetary Authority of Bhutan (RMA), the country's central bank. The RMA has the authority to regulate the money supply, set interest rates, and manage foreign exchange reserves.

The loti is available in denominations of Nu. 1,000, Nu. 500, Nu. 200, Nu. 100, Nu. 50, and Nu. 20. Coins are also available in denominations of Ch. 5, Ch. 2, and Ch. 1.

Bhutan's economy is largely dependent on hydropower exports to India, and the loti has generally been stable over the years. However, the currency has faced some volatility due to fluctuations in global commodity prices and geopolitical tensions in the region.